Development of China's OTT Online Streaming Platforms

In 2019, China’s online video service market was led by three platforms: Tencent Video, iQiyi, and Youku. As growth in paid membership has slowed, however, self-made dramas and variety shows have become more popular, and competition has intensified between online video platforms. Over the past two years, with the rise of the state-backed Mango TV, Bilibili has gradually expanded from animated content to a full product line of film and TV services. Meanwhile, short videos, led by Douyin and Kuaishou, have taken over the industry, impacting video platforms, so the three giants are now under attack from two sides. This report analyzes their potential development strategies and the overall industrys competitive landscape.

1.China’s Online Firm & TV Market
1.1 Content Costs Remain High; Fierce Competition Between the Top Three
1.2 Content Payments Finally Surpassed Advertising Revenue But Growth Slowed
1.3 The Rise of Short Video and Direct Broadcast Threatens Platforms
2. iQiyi
2.1 Monthly User Fees Have Limited Room to Grow; iQiyi is Moving into Licensing
2.2 The iQiyi “Apple Park” Integrates Content and Services
2.3 Short Videos Used to Drive Views of Long Videos
3. Tencent Video
3.1 A Fan Economy Integrating Content, Social, and IP Operations
3.2 Multi-pronged Internal Horse Racing Strategy
3.3 Focusing on Interactive Content
4. Youku
4.1 Seeking Growth Momentum after Acquisition and Lower Sales
4.2 Integrated Content, New E-commerce Model, and licensed content sales strategy
4.3 Developing Online Series and Shared Revenue to Integrate the Industry Chain
5. MIC Perspective
Glossary of Terms
List of Companies
List of Figures
Figure 1: The Chinese Online Video Subscriber Base, 2012-1H 2019
Figure 2: Overall User Penetration Rate of Chinese OTT Film & TV Platforms
Figure 3. iQiyi’s User Base, 2015-2019
Figure 4. iQiyi’s Revenues, 2018Q2-2019Q2
Figure 5 iQiyi’s Revenue Structure, 2018Q1-2019Q2
Figure 6 iQiyi’s 21-Product Matrix
Figure 7 iQiyi’s Short and Long Video Model
Figure 8 Tencent Video’s User Base, 2017Q4-2019Q2
Figure 9 Tencent’s Interactive TV Editing Process

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